Sealed Bidding Law and Legal Definition

A sealed bid is a document enclosed in a sealed envelope and is submitted in response to invitation to bid. Sealed bids received up to deadline date are generally opened at a stated time and place usually in the presence of anyone who may wish to be present and evaluated for award of a contract.

According to 48 CFR 14.101, the elements of sealed bidding are:

1. Preparation of invitations for bids;

2. Publicizing the invitation for bids;

3. Submission of bids in sealed covers;

4. Evaluation of bids;

5. Contract award.

Generally, reasonable time is given to prospective bidders to prepare and submit bids in all invitations. After the opening of bids, contracting officers examine all bids for mistakes. In cases of any apparent mistakes and in cases where the contracting officer has reason to believe that a mistake may have been made, the contracting officer can request from the bidder a verification of the bid, calling attention to the suspected mistake.

A sealed bidding is considered to be a preferred method to award goods and services contracts. Such contracts are awarded to the bidder whose bid meets the requirements set forth in the invitation for bids and to those who submit the lowest bid price or lowest evaluated bid price.